In The Hedge Fund Law Report, Hedge Funds Partner Joel Wattenbarger Provides Insights on Communicating with OCIE Examiners
A two-part series in The Hedge Fund Law Report explores the initial interactions during examinations between examiners from the SEC’s Office of Compliance Inspections and Examinations (OCIE) and an adviser’s CCO, including a detailed discussion about the fairly new practice adopted by OCIE examiners of requesting the CCO to participate in a call to discuss the adviser’s business and compliance program (Interim Call) prior to those examiners coming onsite to the adviser’s office. Both pieces include insights from hedge funds partner Joel Wattenbarger.
The first installment of the series published on Sept. 13, examines what chief compliance officers should expect during initial communications with OCIE examiners. “In most examinations conducted by the SEC’s Office of Compliance Inspections and Examinations (OCIE), a member of the OCIE staff will call the adviser’s CCO to let him or her know that the adviser has been selected for an examination,” explained Mr. Wattenbarger.
The second article published on Sept. 20 examines how chief compliance officers can stay prepared for initial communications with OCIE examiners. “CCOs should not be afraid to ask OCIE examiners in advance of the Interim Call the topics that they would like to discuss,” advised Mr. Wattenbarger. “While CCOs are not necessarily expected to be able to answer every possible question about their advisers’ businesses, they should be prepared to speak to the topics that the examiners have told them that they want to discuss,” Mr. Wattenbarger continued.